PayPal continued to bulk up its payment offerings for the holiday season, bringing its buy now, pay later (BNPL) option called Pay in 4 to Canada.
The new service rolled out with major retailers among its first Canadian users, allowing shoppers to divide purchases ranging from $30 to $1,500 into four interest-free payments spread out over six weeks.
PayPal Pay in 4 screen | Image credit: PayPal press release
The Home Depot and Sephora will be among the first retailers to offer PayPal Pay in 4 to their Canadian customers, PayPal announced. Other brands presenting Pay in 4 at checkout will include Knix, Samsonite, Silk & Snow, Expedia, Hotels.com and Ticketmaster.
The Home Depot Inc. ranks No. 4 in the Top 2000 Database. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual ecommerce sales. Home Depot is also the top-ranked retailer in the Top 2000’s Hardware & Home Improvement category.
Sephora falls under parent company LVMH, which also owns brands including Louis Vuitton, Dior, Tag Heuer and Marc Jacobs. LVMH is the No. 2 online retailer in Digital Commerce 360’s Europe Database.
What is PayPal Pay in 4?
Launching in Canada ahead of Black Friday, Cyber Monday and Boxing Day, PayPal Pay in 4 provides a BNPL option to shoppers at checkout. The service splits eligible purchases into four equal, interest-free payments over six weeks. For users, Pay 4 allows for funding payments through debit, credit or bank account transactions.
“PayPal has served Canadians for over 15 years and is one of the most trusted brands across the country. To meet demand for transparent and trusted payment options, PayPal’s Pay in 4 helps Canadians manage cash flow without late fees or hidden costs,” said Michelle Gill, general manager, small business and financial services, PayPal. “Businesses also benefit as those who offer PayPal BNPL offerings experience increased conversion and higher sales — both critical during peak holiday season.”
Shoppers can manage Pay in 4 purchases through PayPal’s app or website.
PayPal’s holiday season survey
PayPal Pay in 4 options | Image credit: PayPal press release
Going into the 2025 holiday season, PayPal shared that it sees BNPL options driving conversion rates for ecommerce sites, with an 80% higher order value associated with BNPL purchases.
In addition, PayPal’s recent survey data showed that 51% of Canadians intended to spend at least as much during the 2025 holiday shopping season as they did the year before. PayPal’s research found that 31% of Canadians indicated they would consider using BNPL to shop for appliances. Meanwhile, 30% would consider BNPL for home décor/furniture purchases, and 26% would consider it for electronics.
Digital Commerce 360’s 2025 edition of the Top 1000 Report found that more than half (51.3%) of online retailers in the Top 1000 accepted some form of BNPL option at checkout.
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